WHO IS A FRANCHISEE?

WHO IS A FRANCHISEE?

 

Who is a franchisee?  It is estimated that there are nearly 750,000 franchise establishments in the United States; undoubtedly, some of these are multi-unit owners.  In any event, there are hundreds of thousands of franchisees and they all have one thing in common, they took a leap of faith to buy a franchise. 

 

Risk Aversion –

There are many similarities when dissecting the average franchisee.  One of the most important aspects of what makes a franchisee unique is that they are risk averse.

 

A franchisee wants to control his/her own destiny (who doesn’t!?).  A franchisee, however, knows enough to get out of their own way.  A major reason why franchisees buy into a franchise is the fact that they can plug into a proven system, removing some of the risk of starting a new business.  A franchisee entering a market has the opportunity to invest in their own work ethic, while leaving the macro-level business elements to the Franchisor.

 

Choice –

Another reason franchisees elect to buy a franchise is that they can the perfect business for them.  And just as the franchisee is looking for the right franchise, every Franchisor is looking for the right franchisee.  In food-service, you find food-service people!  Pet franchises are run by pet lovers!  Automotive repair franchises are run by former or current mechanics with a bit of an entrepreneurial spirit.  In any case, there is something out there for everyone.


It really is a lifestyle issue.  In the franchise world, we see people deciding to work in the same field as they always have, with a bit of a tweak toward sanity.  A family with children might elect to buy a franchise that grants them more flexible hours, or even a business that allows them to bring their children to work.

 

Budget –

Often times, franchisees start with a number in mind.  It is not always how much they have to invest, but more so, how much do they want to make.  If you were given the opportunity to do what you love everyday, how much do you need to make to carry on the lifestyle you have?  Because franchise financing is becoming more and more relevant again, franchisees are encouraged to use their leverage (within reason) to find something that fits their budget, their personality, and their financial goals.

 

Brand Loyalty –

Franchises often have a competitive advantage due to the name recognition.  While this name recognition gets customers through their doors, it also brings in franchisees.  “Believers in the brand” make some of the best franchisees because they are already drinking the Kool-Aid!  They usually exhibit the cultural aspects that franchisors are trying to impress on their franchisees and they have an enthusiasm that is almost impossible to artificially reproduce.  They can’t wait to tell you that they now own their favorite pizza joint or sub shop and they shout it loud in the brave new world of social media.

 

So who is a franchisee?  It is someone who has decided “Enough is enough!”  Someone who has a great head on their shoulders but they have grown tired of putting in those extra hours just to make their boss a few extra dollars.  It is someone who was passed up for promotion or a raise one too many times.  Someone who barely made it through another round of layoffs and knows it won’t be long before they are on the chopping block.  Someone who has worked a professional job and has had the discipline to stick with it, save some money, and now has a chance to be the master of their own domain.

 

Sean Callaway

Franchise Consultant

Franchise Marketing Systems

www.FranchiseMarketingSystems.com